> With plausible deniability scenario, you could have encrypted two wallets, one that you afford to lose. You can give it up and it's possible the attacker will be satisfied and you can keep the wallet that you care about.
The observation here is that there's a _very_ narrow slice of adversaries that satisfy the following constraints:
1. Are willing to force you to hand over private key material;
2. Are ignorant to the underlying thing they're looking for;
3. Are ignorant to the fact that your choice of encryption scheme allows for plausible deniability.
This model assumes all 3, when in reality almost any adversary that satisfies (1) is not going to satisfy (2) or (3) -- they almost always have a sense of what they're looking for (i.e., they know the wallet isn't empty or they wouldn't waste their time on you) and, given that, they aren't going to be fooled by a scheme that explicitly supports plausible deniability.
We can always contrive exceptions, of course. But part of secure design and threat modeling is having a reasonable conception of your adversary.